Gold suffered for back-to-back losses Wednesday, dragged lower as trade tensions between the U.S. and China intensified, raising concerns over demand for industrial metals and sending copper prices to their lowest finish in almost a year.
Coffee futures in the September contract are currently trading lower by 135 points at 113.40 a pound reversing some of the gains that we witnessed over the last couple of trading sessions as the volatility certainly has come back to life for the 1st time in months.
Gold and silver have come back strong as funds and stock traders have realized that the tariffs are good for the U.S. in the long run and stocks have broken through most resistance levels and may keep going all the way to contract highs in the coming weeks.
The 10 year note in the September contract is trading higher by 6 points at 120/06 right near a 4 week high continuing its bullish momentum as the yield currently stands at 2.85% as I'm currently not involved, but I'm looking at a possible short position in the coming days ahead as this would be a counter trend recommendation.
Gold futures in the August contract are trading lower by $2 an ounce at 1,268 continuing its bearish momentum right at a 7 month low and if you are short a futures contract place the stop was above the 10 day high which remains at 1,313, however chart which will improve tremendously later this week therefore lowering the monetary risk as I still think lower prices are ahead.
The stock market has been rattled by the threat of a global trade war between two of the world largest economies, creating an environment that ought to draw bidders for gold, underlining its appeal as a haven asset in times of market uncertainty.
Comex gold futures, hit a two-week high on Thursday, supported by a weaker dollar and trade worries between Washington and Beijing, even as the U.S. Federal Reserve forecast a slightly faster pace of interest rate hikes this year.
Gold ended lower Wednesday, holding ground just above its lowest finish of the year, as U.S. manufacturing data helped lift the dollar and investors weighed concerns over the fate of nuclear negotiations with North Korea.